Using the Sum-Of-The Years'-Digits Method, Depreciation for 2010 and Book

question 83

Multiple Choice

Using the sum-of-the years'-digits method, depreciation for 2010 and book value at December 31, 2010, would be

• A)$13,500 and $13,500.
• B)$13,500 and $8,500.
• C)$12,000 and $17,000.
• D)$12,000 and $12,000.Depreciation in 2010 = ($45,000 5,000) 3/10 = $12,000 Book value, 12/31/10 = $45,000 16,000 12,000 = $17,000

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Definitions:

Intangible Assets

Assets that lack physical substance but possess value, such as patents, trademarks, and copyrights, recognized in financial accounting.

Straight-Line Amortization

A technique for evenly distributing the expense of an intangible asset throughout its lifespan.

Technological Feasibility

The extent to which a proposed technology or solution can be successfully developed and implemented based on current technological capabilities.